Section 2. Section 53G-4-305 is enacted to read:53G-4-305. District administrator compensation.(1)As used in this section:(a)"Covered administrator" means:(i)a school district superintendent;(ii)a school district business administrator;(iii)a deputy superintendent or equivalent; or(iv)a member of a school district's administrative team or cabinet whom the district superintendent directly supervises.(b)"Limited benefit" means a benefit other than:(i)health insurance;(ii)dental insurance;(iii)a retirement contribution required under Title 49, Utah State Retirement and Insurance Benefit Act; or(iv)a workers' compensation benefit required under Title 34A, Chapter 2, Workers' Compensation Act.(c)"Total compensation" means the sum of:(i)the base salary; and(ii)the total value of all limited benefits provided to the covered administrator.(d)"WPU inflationary factor" means the percentage increase in the weighted pupil unit value, as defined in Section 53F-2-102, from one fiscal year to the next fiscal year, as determined by the Legislature in accordance with Section 53F-2-208.(2) A local school board may not approve an annual increase in total compensation for a covered administrator that exceeds the WPU inflationary factor for the applicable fiscal year unless:(a)the local school board holds a public hearing in accordance with Subsection (3);(b)the compensation increase is tied to measurable performance outcomes in accordance with Subsection (4); and(c)the compensation increase is approved by a majority vote of the local school board at a public meeting following the public hearing described in Subsection (3).(3)(a)Before a local school board may approve an increase in total compensation for a covered administrator that exceeds the WPU inflationary factor, the local school board shall hold a public hearing.(b)The local school board shall:(i)conduct the public hearing during a regularly scheduled or specially called meeting;(ii)post the notice of the public hearing in accordance with Section 52-4-202;(iii)include an opportunity for public comment; and(iv)include a presentation of:(A)the proposed total compensation increase amount and percentage;(B)the WPU inflationary factor for the applicable fiscal year;(C)the performance metrics described in Subsection (4) that justify the proposed increase; and(D)the covered administrator's demonstrated achievement of the performance metrics.(4)(a)A local school board shall base an increase in total compensation that exceeds the WPU inflationary factor on the covered administrator's demonstrated achievement of measurable performance outcomes over at least two consecutive fiscal years.(b)Performance outcomes under Subsection (4)(a) shall include at least three of the following metrics:(i)improvement in the school district's teacher retention rate;(ii)improvement in student literacy outcomes as measured by statewide assessments;(iii)improvement in student mathematics proficiency as measured by statewide assessments;(iv)improvement in the school district's high school graduation rate;(v)improvement in the school district's chronic absenteeism rate;(vi)improvement in the school district's college and career readiness indicators;(vii)successful implementation of strategic initiatives approved by the local school board; or(viii)other measurable outcomes approved by the local school board that demonstrate improved student achievement or operational efficiency.(c)A local school board may select no more than one performance outcome under Subsection (4)(b)(viii).(d)Before the beginning of the fiscal year in which performance is measured, the local school board shall:(i)establish specific, measurable targets for each performance outcome selected under Subsection (4)(b);(ii)prepare a written justification demonstrating how the local targets align with and support the state board's strategic goals and statewide education priorities;(iii)publish the performance targets and written justification described in Subsections (4)(d)(i) and (4)(d)(ii) on the school district's publicly accessible website; and(iv)provide the performance targets and written justification to the state board.(e)In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the state board shall make rules to establish:(i)guidance on setting appropriate performance targets that align with statewide education goals;(ii)standards for demonstrating meaningful improvement; and(iii)requirements for local school boards to justify performance targets.(f)Following the completion of each fiscal year during which performance is measured, the local school board shall publish on the school district's publicly accessible website a report demonstrating the covered administrator's achievement of the established performance targets.(5)(a)A local school board may not approve limited benefits for a covered administrator with a total value that exceeds 10% of the covered administrator's base salary.(b)A local school board may not circumvent the limitation described in Subsection (5)(a) or the total compensation cap described in Subsection (2) through the use of excessive benefits in lieu of salary increases.(c)For purposes of calculating the limitation described in Subsection (5)(a), limited benefits include:(i)an automobile allowance or use of a district-owned vehicle for personal use;(ii)a housing allowance;(iii)a cell phone allowance that exceeds the actual cost of the cell phone used for district business;(iv)club memberships;(v)professional development expenses that exceed $10,000 annually; and(vi)other similar benefits that provide personal value to the covered administrator.(6)(a)Except as provided in Subsection (6)(c), a local school board may not approve a maximum salary for a deputy superintendent or other covered administrator described in Subsection (1)(a)(iv) that exceeds 110% of the initial salary established for:(i)the school district superintendent; or(ii)the school district business administrator, if the deputy superintendent or covered administrator reports to the business administrator.(b)The limitation described in Subsection (6)(a) applies to the total compensation package, including base salary and the value of limited benefits.(c)The limitation described in Subsection (6)(a) does not apply if the deputy superintendent or covered administrator described in Subsection (1)(a)(iv):(i)was employed by the school district in the position before July 1, 2026; and(ii)received a salary that exceeded the limitation.(7)(a)Except as provided in Subsection (7)(b), when a local school board appoints a new school district superintendent, the local school board may not approve an initial salary for the new superintendent that equals or exceeds the salary of the outgoing superintendent at the time the outgoing superintendent left the position.(b)Subsection (7)(a) does not apply if the new superintendent has:(i)at least five years of experience as a school district superintendent in a school district of comparable size; or(ii)at least 10 years of experience in school district-level educational administration.(c)For purposes of Subsection (7)(b)(i), a school district is of comparable size if the school district's pupil in average daily membership, as defined in Section 53F-2-102, is within 25% of the appointing school district's pupil in average daily membership.(8)This section does not apply to the Utah Schools for the Deaf and the Blind.